GT Capital sets dividend rate for preferred shares

GT Capital Holdings, the conglomerate of tycoon George Ty, has set a dividend rate of 4.6299 percent for its five year preferred shares and 5.0949 percent for its seven year preferred shares.

In a disclosure to the Philippine Stock Exchange (PSE), GT Capital said the offering would start on Oct. 17 until Oct. 21 while the listing of the shares has been set on Oct. 27.

Series A shares may be redeemed in whole but not a part of the shares on the fifth anniversary of the issue date or any dividend payment date thereafter while holders of series B shares will have option to redeem them starting the seventh year.

The company hopes to raise as much as P12 billion from the issuance of 12 million preferred shares at P1,000 per share.

It is beefing up its war chest to fund strategic acquisitions in the future if market conditions are ripe.

In a briefing for investors, GT Capital CFO Francisco Suarez Jr. said proceeds would be used “to refinance previous acquisitions paid through bridge financing in the fourth quarter of 2016 and to fund strategic acquisitions.”

At present, the company has P9 billion in loans secured from four banks: Philippine National Bank (P4 billion), Security Bank (P2 billion), Bank of the Philippine Islands (P2 billion) and Development Bank of the Philippines (P1 billion).

Preferred shares are cumulative, non-voting, non-participating, non-convertible and peso-denominated.

In May, GT Capital made its foray into the infrastructure business through the acquisition of a 15.6 percent stake in Metro Pacific Investments Corp. (MPIC).

GT Capital’s businesses are housing and property through Federal Land Inc., automotive through Toyota Motor Philippines, banking through Metrobank and financial services through Toyota Financial Services Philippines Corp.